Study: Annuities Add Value to Retirement Plans

In its press release, NAVA said the study found
financial advisors feel it is the combination of income
guarantees and insurance benefits that annuities provide
that is driving their clients to include annuities
in qualified plans or IRAs.

Seventy percent of survey respondents cited the
death benefit and 61% listed living benefits among the
top three reasons for recommending annuities in qualified
plans or IRAs, according to the release. Guaranteed
lifetime income was cited by 66% of respondents as one of
the top three reasons.

According to the study 42% of annuities sold by the
respondents were placed into qualified plans. For the
industry as a whole, approximately 60% of all annuity
sales in 2004 were in qualified plans.

“Because so many people keep the majority of their
retirement savings in qualified plans or IRAs, taking
advantage of the asset protection annuities offer and the
peace of mind they provide may make sense for many
Americans,” said Mark Mackey, president and CEO of NAVA,
in the release.